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Lattice (LSCC) to Report Q3 Earnings: What's in the Cards?

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Lattice Semiconductor Corporation (LSCC - Free Report) is scheduled to report third-quarter 2019 results on Oct 29.

The company surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average positive earnings surprise of 14.31%.

Which Way Are Q3 Estimates Treading?

For third-quarter 2019, Lattice anticipates net revenues between $101 million and $105 million. The Zacks Consensus Estimate for sales is currently projected at $103 million.

Further, the Zacks Consensus Estimate for earnings is pegged at 15 cents.

Past-Quarter Performance

In the second quarter, Lattice delivered non-GAAP earnings of 15 cents per share, which surpassed the Zacks Consensus Estimate by 25%. The figure also improved 50% on a year-over-year basis.

Net revenues of 102.3 million came ahead of Zacks Consensus Estimate of $100 million. However, the figure was down 0.4% from the year-ago quarter.

Let’s see how things are shaping up prior to this announcement.

Factors to Consider

Lattice’s well diversified product portfolio is likely to get reflected on the third-quarter results. Moreover, strong efforts to expand its product portfolio is likely to have aided its end-market performance in the to-be-reported quarter.

The company’s solid momentum across communications and computing market is expected to get reflected in the third-quarter results.

In computing space, Lattice is likely to have benefited from strong footprint across a number of different OEM server platforms. Further, advancement in its products that are highly utilized in server and client computing platforms is likely to have contributed to the company’s third-quarter performance in this particular market.

Lattice devices, which offer support for functions like security, video bridging and IO aggregation in different form factors, are also expected to have helped the company in gaining traction among client computing platforms in the third quarter.

Further, ramping of 5G wireless infrastructure buildout is expected to have contributed significantly to the company’s third-quarter revenues.

Additionally, Lattice is anticipated to have performed well in the industrial and automotive market during the third quarter. Notably, robust industrial and automotive applications are expected to have brought new design wins in the third quarter.

All these factors are likely to have benefited Lattice’s third-quarter results.

However, macroeconomic headwinds in Asia are likely to have hurt the company’s performance in the consumer market during the third quarter. This is anticipated to have negatively impacted the upcoming results.

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for Lattice this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Lattice has an Earnings ESP of 0.00% and a Zacks Rank #3.

Stocks to Consider

Here are some stocks you may consider, as our proven model shows that these have the right combination of elements to post an earnings beat this quarter.

Advanced Energy Industries, Inc. (AEIS - Free Report) has an Earnings ESP of +4.17% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Advanced Micro Devices, Inc. (AMD - Free Report) has an Earnings ESP of +6.54% and a Zacks Rank #2.

GlaxoSmithKline plc (GSK - Free Report) has an Earnings ESP of +3.03% and a Zacks Rank #2.

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